Nvidia Earnings, Inflation Data, and Jackson Hole Speech to Dominate US Markets

The US stock market is heading into one of its most significant weeks in late summer, with several key events set to shape the outlook for stocks and bonds. Nvidia's earnings report on Wednesday will be a major focus point, as investors look for signs that the AI investment cycle can continue. The chipmaker is forecast to report over $92 billion in quarterly revenue, but expectations are high, and any disappointment could have far-reaching implications.

The core PCE price index, the Fed's preferred inflation measure, will also be released on Wednesday morning. A softer reading could reduce expectations for a September rate hike, while a stronger number would reinforce concerns that inflation remains stubbornly high. Meanwhile, investors are bracing themselves for potential turmoil in Treasury markets, with rising yields and increased borrowing needed to fund the AI buildout.

The week will also feature Fed Chairman Kevin Warsh's first Jackson Hole appearance on Friday, where he is expected to outline his broader vision for the central bank. However, given Warsh's preference for providing limited information about policy signals, investors may not glean much from his comments. Meanwhile, concerns over US-Canada trade tensions and elevated oil prices continue to weigh on markets.